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Showing results for tags 'bottom up allocation'.
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Plan facts: 3%SH to all discretionary PS to all 3 HCES, 3NHCEs, young owner, mixed age staff each participant is in own allocation rate for PS Can the employer "cherry pick" a particular participant - who happens to be youngest and new ppt mid-year w lowest eligible pay - such that his own RG passes (a)(4)? The remaining NHCEs will receive at least GW minimum. Doing this passes all (a)(4) testing, 410b easily. My hesitation is because of perceived bottom up allocation... would it be better to "cherry pick" an existing but younger ppt who earns $100k (obviously more expensive to do so)? FYI, the other 2 HCEs are receiving the 3% SH plus 1% PS, their indiv RGs pass easily. Thank you.
